ILLINOIS INVENTION INDEX – MARCH 2025

The Invention Index measures a country’s or state’s innovation output by comparing GDP growth with patent production growth. 

Illinois Invention Index March 2025: 1.05% (C grade)

Illinois Invention Index over the last year:

Anything over C grade is positive sentiment; anything under C is negative outlook/sentiment. Using that sentiment, it is possible to observe trends over time, and also compare states/countries. In doing so we can predict which states have the best chance to recover economically from the pandemic (or any other economic incident that may occur).

Discussion:

In March, the Illinois Invention Index scored a positive sentiment which was lower than the previous year’s average and underperformed the upward trend for the year. This is similar to the prior 12 months, which experienced a considerable upward trend. As the world continues to recover from the height of the Covid-19 pandemic, it is unclear if there is any backlog of applications awaiting approval or if the department has fully caught up. If approvals are not yet caught up, we may see a decrease in approvals – and a reduced Invention Index – in the coming months/years as the state feels the full economic impact of companies closing and/or being forced to minimize their staffing and therefore minimize their R&D work hours.

Invention Index Scores:

Analysis:

1. Trends in the Scores Over Time:

   The Illinois Invention Index has shown a consistent decline over the past six months, starting at 1.86% in October 2024 and decreasing to 1.50% by March 2025. This downward trend indicates a gradual reduction in innovation output relative to economic growth in the state.

2. Possible Reasons Behind Increases or Decreases:

   Several factors could contribute to this decline. Economic challenges, such as reduced funding for research and development, changes in industry priorities, or shifts in patenting activity, may impact the number of patents filed. Additionally, broader national or global economic conditions could influence innovation trends in Illinois.

3. Implications of Higher vs. Lower Scores for Innovation and the Local Economy:

   A higher Invention Index score typically suggests a robust innovation environment, potentially leading to economic growth, job creation, and technological advancement. Conversely, a declining score may signal reduced innovation activity, which could have implications for the state’s competitiveness and long-term economic health.

4. Any Standout Anomalies or Shifts Worth Noting:

   While the consistent decline is noteworthy, there are no abrupt changes or anomalies within the six-month period. The steady decrease suggests a gradual shift in innovation dynamics rather than sudden disruptions. Monitoring future scores will be essential to determine if this trend continues or stabilizes.

Learn more about the Invention Index here.

Are you thinking of patenting any of your bright ideas? Did you know your research work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

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